The price is in a retracement process, right now is forming a kind of doji pattern in the daily chart at the 61.8 fibo retracement level.
What to take on considerations:
In the fundamental side:
The last CPI report, was lower as the market expected, so this information with the last weak job report, are the catalyst for the next FOMC meeting on wednesday to start to talk about about cut rates. The market, according CME Fedwatch Tool is expecting one cut rate for july meeting, so more downside movement on the dollar is expected.
In the technical side:
The price is in a retracement, which one reach the 61.8 fibo retracement level of the last downside movement. The drawn channel is expected to be break according the fundamental situation. Once the price break it, the next area expected to be touched is the 161.8 fibo extension of the third wave.
What to take on considerations:
In the fundamental side:
The last CPI report, was lower as the market expected, so this information with the last weak job report, are the catalyst for the next FOMC meeting on wednesday to start to talk about about cut rates. The market, according CME Fedwatch Tool is expecting one cut rate for july meeting, so more downside movement on the dollar is expected.
In the technical side:
The price is in a retracement, which one reach the 61.8 fibo retracement level of the last downside movement. The drawn channel is expected to be break according the fundamental situation. Once the price break it, the next area expected to be touched is the 161.8 fibo extension of the third wave.
